The recent week has seen a significant bullish wave sweeping across the crypto market, with numerous altcoins witnessing substantial gains. As the weekend approaches, it presents a crucial testing ground for the sustainability of these rallies.
In a detailed analysis, three altcoins have been identified that may either capitalize on this bullish momentum or face potential reversals as they head into the weekend.
NEAR has emerged as one of the standout performers in the last 24 hours, surging by 13% to reach a price of $3.20. While this rapid increase reflects robust market enthusiasm, it also raises concerns about short-term exhaustion in price momentum. The Relative Strength Index (RSI) for NEAR is approaching overbought territory, exceeding the 70.0 mark—a level that has historically triggered reversals in the token’s price. If investors choose to take profits, NEAR could experience a decline, potentially retreating to support levels at $3.06 or even as low as $2.70.
On the other hand, if NEAR can withstand any bearish pressure, there is a possibility for the price to push past the critical resistance level of $3.34. Securing this level could invalidate the bearish outlook and possibly propel the altcoin higher, eyeing a target of $3.60.
Optimism (OP) is another focus, set to experience a significant token unlock this weekend, amounting to 116 million tokens valued at nearly $95.95 million. Such an increase in supply could exert downward pressure on the price, exacerbating short-term volatility. Currently, OP trades at $0.838, holding above its support at $0.812, which marks a monthly high. Should the token unlock trigger selling pressure, it risks breaking below the $0.812 support level, which could lead to a drop to around $0.760, challenging the recent recovery.
Conversely, if bullish momentum prevails and OP manages to defy selling pressure, a rise beyond $0.875 could occur. Successfully flipping this resistance into support would negate the bearish outlook, potentially driving the token further toward the $0.909 price level in the days ahead.
Lastly, Pump.fun (PUMP) is another altcoin to watch this weekend, currently priced at $0.0075 and steady above its support level of $0.0074. If PUMP successfully bounces from this support, it could trigger a recovery. This would provide it with a chance to build upward momentum, aiming for its all-time high of $0.0090, which requires a 21% rise. Given that PUMP has already gained 27% over the past week, the potential for another rally seems plausible, especially if bullish conditions persist.
However, if selling pressure intensifies or bearish sentiment prevails, PUMP could struggle to defend the $0.0074 support level. In such cases, the altcoin might decline further, potentially dropping to $0.0062 and invalidating its bullish outlook, increasing downside risk for investors.
As these developments unfold, traders and investors will be closely monitoring the performance of these altcoins over the weekend to gauge whether the recent bullish trends can be sustained or if corrections are on the horizon.
